Coupang (CPNG) Q1 2025 earnings summary

Executive summary

• Net revenues for Q1 2025 increased 11% year-over-year to $7.91 billion (21% FX-neutral), with strong growth in both Product Commerce and Developing Offerings segments.

• Net income was $114 million, reversing a net loss of $24 million in Q1 2024, driven by higher gross profit and improved operating leverage.

• Adjusted EBITDA rose to $382 million, up 36% year-over-year, with a margin of 4.8%.

• Product Commerce active customers grew 9% year-over-year to 23.4 million, with net revenues per active customer up 6% on a constant currency basis.

• Board authorized a $1 billion share repurchase program as part of a disciplined capital allocation strategy.

Financial highlights

• Gross profit rose 20% year-over-year to $2.32 billion, with gross margin improving by 217 bps to 29.3%.

• Adjusted EBITDA for Q1 2025 was $382 million (4.8% margin), up 36% year-over-year.

• Operating income was $154 million, up from $40 million a year ago.

• Free cash flow for the quarter was $116 million, up 8% year-over-year; trailing twelve months free cash flow was $1.0 billion, down $450 million year-over-year due to prior period non-recurring working capital benefits.

• Cash, cash equivalents, and restricted cash totaled $6.2 billion at quarter-end.

Outlook and guidance

• Management expects continued investment in Developing Offerings and fulfillment/logistics infrastructure, with capital expenditures projected to exceed several billion dollars over the next several years.

• Full-year constant currency consolidated growth rate expected to be about 20%.

• Product Commerce segment expected to continue margin expansion, targeting long-term margins above 10%.

• Developing Offerings expected to post adjusted EBITDA losses of $650–$750 million for the full year.

• Liquidity is expected to be sufficient for at least the next 12 months, supported by strong cash flow and available credit facilities.